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Barron v Potter

[1914] 1 Ch 895

Case summary last updated at 21/01/2020 20:24 by the Oxbridge Notes in-house law team.

Judgement for the case Barron v Potter

Directors of company were deadlocked; were two factions of directors, both of whom refused to turn up to board meetings called by the other side in order to prevent there being a quorum. General meeting of shareholders purported to appoint an extra director to break deadlock; one group of directors challenged this decision on grounds that only directors had power to appoint directors. Held:
 
·       Is a default common law rule that annual general meeting has power to appoint directors where board is incapable of acting due to deadlock.
·       Thus appointment valid.

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